Developing a legacy
With the UAE gearing up to host the Expo 2020, new infrastructure needs to be developed and these will go on to serve the country and result in a sustained period of opportunities for workers in the region. Like for other nations that have hosted world expos before, the hope is that the Expo 2020 will leave behind a legacy that the UAE can use to put itself on the map.
The event is also bound to put the Emirates at the forefront of sustainability as it has clearly placed green principles at the heart of its bid for the Expo. A nation-wide collaboration of efforts from private and public sector will help in the management of resources for the event.
Renewed investor confidence is evident with Dubai properties seeing the fastest rising prices in the world. According to a Knight Frank report, prices in the emirate have increased by over 28% since the third quarter of 2012 compared to an average rise of 4.6% worldwide. Developers in the city are also revealing new exclusive projects, catering to the elite. Emaar Properties showcased its new Dubai Hills project to only 70 "super rich" investors, announcing that the villas would be priced Dhs30 million onwards.
However, with the rapid growth comes a warning for caution. Nouriel Roubini, a professor at NYU's Stern School of Business and chairman of Roubini Global Economics, has written a report warning that "signs of frothiness, if not outright bubbles" are reappearing in markets like Switzerland, Sweden, Norway, Canada and the UK. According to him Central Bank regulations may not be enough to reign in values going too high and countries still need to be careful of a slow-motion repeat of the 2008 housing bubble. Cluttons has also issued a statement, stressing the need for tighter regulations in the Dubai real estate market.
Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. The UAE's successful bid to host the world expo has been widely celebrated across the emirate by residents and property developers alike. It is clear that Dubai is working towards sustainable growth but tighter regulations might be needed as prices continue to increase. For construction companies across the country, the future looks good as confidence in the market has been renewed. We hope our round-up of key stories and expert opinions have helped in understanding the changes the emirate will witness as a result of the Expo 2020. We'll be following up on all of the latest developments to keep our readers updated.